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HRA Distributions Must Be Included in Calculating Overtime Pay

In a recent court ruling on a case involving the City of Sheboygan in Wisconsin, the judge ruled surprisingly that distributions from an HRA (Health Reimbursement Arrangement) need to be included in calculating the overtime rate of pay unless the distribution was made from an irrevocable trust.

If you currently have an HRA with National Insurance Services, you have nothing to worry about. Our HRAs have underlying irrevocable benefit trusts that provide interest earnings and hold the assets until they are needed to reimburse eligible medical expenses. If you have any questions about this ruling or HRAs, your Retirement Income Representative at 800.627.3660.

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Steve Smith

Steve Smith

Steve Smith is a powerhouse of energy, living by the mantra "work hard, play hard." As an expert in uniting teams for a greater purpose, Steve's innovative and creative strategies in employee health and wellness are game-changers. With over 25 years of expertise in health insurance, covering compliance, cost mitigation, utilization, analytics, wellness plans, and strategic planning, Steve is the go-to expert for driving down utilization trends and fostering a culture of well-being. His clients trust him to deliver exceptional results, making him an invaluable asset in the industry. As an Employee Benefits Consultant, Steve specializes in health care consulting for Minnesota public sector organizations including fully insured, self-insured, and stop-loss plans. Steve is a licensed insurance agent and holds the designations for Managed Healthcare Professional (The Health Insurance Association of America), Certified Patient Protection and Affordable Care Act Professional (National Association of Health Underwriters), and Group Benefits Disability Specialist (Hartford School of Insurance).